Crypto Markets Display Mixed Trends as Tariff Fears Ease and Recession Worries Mount
In the last 24 hours, the cryptocurrency market showed a mixture of resilience and volatility, with notable developments surrounding VeThor (VTHO), Story Protocol’s IP, and market reactions to the easing of trade tensions and growing recession concerns in the U.S.
Bitcoin (BTC) remained relatively stable, trading just below the $85,000 mark with a modest 1.6% increase, while Ether (ETH) also gained 2.7%, rising to $1,630. However, the broader CoinDesk 20 Index saw a slight decline of 2%, driven largely by losses in Dogecoin (DOGE) and Solana (SOL), both of which dropped by more than 2.5%. Cardano (ADA) and XRP saw minimal movement, as investors are taking a wait-and-see approach amid a mixed macroeconomic backdrop.
“Investors are becoming increasingly concerned about a potential U.S. recession, with betting markets placing 40%-60% odds on a recession occurring in 2025,” said Augustine Fan, head of insights at SignalPlus. “However, despite this, the crypto market has benefitted from recent volatility, as cryptocurrencies have demonstrated less erratic behavior compared to traditional equities during this risk-off environment.”
One of the standout tokens, Mantra’s OM, managed to rebound 20% in the last 24 hours, following a dramatic 90% loss late Sunday. Despite the wild fluctuations, the company’s CEO remains confident about the recovery plan, though skepticism lingers among traders. Similarly, Story Protocol’s IP token experienced a rollercoaster, falling by 20% before quickly recovering by over 30%, highlighting the volatility still present in some parts of the market.
VeThor (VTHO), however, saw a standout performance, surging 37% after UFC CEO Dana White joined the project as a strategic advisor. The announcement boosted confidence in the token’s future and its role in the Real World Assets (RWA) sector, adding to the growing optimism surrounding VTHO’s adoption.
“VeThor’s rise is a clear sign that mainstream adoption could be closer than many anticipated,” said one market observer. “Having a prominent figure like Dana White involved is certainly a positive signal for the token and its ecosystem.”
In terms of Bitcoin, QCP Capital noted that while the cryptocurrency has stabilized within the $80,000-$90,000 range, traders are beginning to look toward mid-term price action. “We’ve seen increased buying interest in $100,000 call options, with notional open interest rising to nearly $1.2 billion,” the firm said. “This shows that while there is caution in the short term, there’s growing confidence in Bitcoin’s longer-term prospects.”
The broader sentiment remains cautious, with some traders expressing hope that the worst of the tariff-driven sell-offs is behind them. “The Fed’s commitment to stabilizing markets and the ongoing trade negotiations between the U.S. and the EU are providing hope for a calmer market moving forward,” said Jupiter Zheng, partner at HashKey Capital. “As long as the tariff situation continues to evolve positively, we’re optimistic that the market will regain its footing.”
In conclusion, while there’s still uncertainty surrounding the broader economic landscape, especially in the U.S., certain crypto assets are showing signs of recovery and attracting more investor interest. The market’s adaptability during periods of volatility suggests that crypto could play a key role in portfolio diversification as investors navigate global economic challenges.
